Shrinking home sizes may hold the solution to overcoming the housing predicament
In the dynamic world of real estate, a significant shift has been observed in the UK property market. According to Mark O'Dwyer, sales director at Quickmove, downsizers are playing a pivotal role.
The high percentage of downsizers in the market is driven by several key factors. One of the most influential is the high proportion of older homeowners owning their properties outright. With approximately 61% of UK adults aged 65 and above owning their homes outright, many are able to sell larger properties without the constraints of mortgage payments and move to smaller, more manageable homes.
Another factor is the desire to reduce monthly outgoings. Many downsizers prioritize lowering their living costs, including mortgage payments, council tax, and maintenance expenses, especially as inheritance tax and the upkeep of larger, older homes become burdensome for younger generations.
Changing family circumstances also play a significant role. Once children leave home, older homeowners often choose to downsize to better suit their current lifestyle, such as relocating to attractive retirement locations like coastal areas.
Regional disparities also reflect the opportunities for equity release. Downsizing is more common in higher-value areas like London where homeowners can unlock more equity by moving to smaller, less expensive properties. For instance, 47% of movers in London were downsizers compared to 33% in Wales.
However, it's important to note that while downsizing remains significant, its proportion slightly declined from 40% in early 2024 to 37% in 2025 overall. This decline can be partly attributed to falling mortgage rates encouraging first-time buyers to enter the market.
In terms of the impact, Quickmove estimated that downsizers put 342,824 bedrooms back on the market in a single year. This is enough to accommodate the entire population of Wigan, currently standing at 339,174.
Quickmove Properties' research indicates that downsizers accounted for 32% of the 2023 transactions, equivalent to 229,621 sales. In the South East alone, downsizers have released an estimated 52,993 bedrooms back onto the housing market.
Moreover, Quickmove offers bungalow-style park homes for over 50's in some coastal, rural, and semi-urban locations, catering to the need for high-quality smaller homes for older people to move into. O'Dwyer emphasizes the importance of such accommodations, highlighting their role in bringing balance to the market and supporting efforts to overcome the housing crisis.
In a company survey, 65.1% of individuals said they relinquished one bedroom while downsizing their property, 24.7% gave up two bedrooms, 7.4% gave up three bedrooms, and 1.4% lost four.
In conclusion, the combination of widespread outright homeownership among older individuals, financial incentives to reduce housing costs, lifestyle changes following children leaving home, and the ability to release equity in high-value regions are the main contributors to the high proportion of downsizers in the UK property market in 2023.
Investing in real-estate has become an attractive option for many older UK homeowners due to their high proportion (61%) of owning properties outright. This allows them to sell larger homes, avoiding mortgage payments, and invest in smaller, manageable properties.
Finance plays a significant role in downsizing decisions, as many older homeowners seek to lower their living expenses, particularly mortgage payments, council tax, and maintenance costs, which can become burdensome over time.
